New Michigan law extends family welfare program time limit to 5 years

(The Center Square) – Michigan families relying on the Family Independence Program can now stay on welfare for a longer period of time after a new law took effect Tuesday.

Senate Bill 932, sponsored by state Sen. Sarah Anthony, D-Lansing, and signed by Gov. Gretchen Whitmer, extends the time families can receive cash assistance through the FIP from four to five years.

The bill had passed both chambers along party lines, with Democrats arguing it would give families extra time and flexibility during tough financial periods.

But Republicans criticized the bill, citing the burden on taxpayers and arguing the legislation incentivizes long-term dependency on government aid.

“The people of Michigan believe in lending a hand to help their neighbors during tough times, but they also expect these programs to be temporary and aimed at encouraging independence,” state Rep. Ann Bollin, R-Brighton Township, said Tuesday. “Instead, what we’re seeing is a significant shift toward bigger government and longer dependence on taxpayer dollars.”

The Michigan House Fiscal Agency reports that state costs will increase by about $1.8 million to $2.9 million. The increase has been accounted for in the state’s 2024-25 fiscal year budget, which was balanced in part by raising Michigan’s individual income tax rate from 4.05% to 4.25% in January.

Opponents also raised concerns over the lack of added safeguards against welfare abuse in the new expansion. Incidents of welfare fraud have risen more than 200% in recent years, from around 80 recorded offenses in 2019 to 248 recorded offenses in 2022 , according to the latest Michigan State Police Crime Report.

“Businesses are hiring all across our state, and we should be helping people get off of welfare and into good jobs. Meanwhile, welfare fraud has tripled since 2019,” said House Republican Leader Matt Hall, R-Richland Township. “It’s an abuse of the dollars of hard-working Michiganders, and it has to stop.”